WEG proclaims funding of R$ 660 million to broaden engine manufacturing

WEG proclaims funding of R$ 660 million to broaden engine manufacturing

Project foresees a 25% increase in the production capacity of industrial engines and construction of a new factory focused on electric mobility

THE WEG (WEGE3) announced this Tuesday, 27th, that it will invest R$ 660 million to expand its production capacity for industrial and electric traction motors in the Jaraguá do Sul industrial park, in Santa Catarina.

The investment will be carried out over the next three years and will involve the construction of a new factory dedicated especially to engines for the electric mobility. The delivery of the new factory, with 18,000 m² of built area, is scheduled for the first quarter of 2024.

The project also includes the expansion by 23,000 m² of the current WEG buildings for the manufacture of components and export logistics. WEG’s projection is that the entire investment will increase its production capacity of industrial motors by 25%.

Market analysts praised the allocation of resources. “The project reinforces our constructive estimates for the medium term and the company’s positive outlook for opportunities in electric mobility,” said analysts at Itaú BBA in a report.

Itaú BBA has a target price of BRL 36 for the share, with the model pricing in a 20% growth in the domestic industrial electrical and electronic equipment line in 2022 and 13% for 2023.

WEG’s industrial engines area had revenue of R$ 3.4 billion in the second quarter, representing 47.7% of the company’s net operating revenue in the period.

Eleven, with a target price of R$52 for WEG, also highlighted the company’s plans for the electric vehicle market. “The move is positive in our view, with the company showing its focus on capturing the energy transition and maintaining its diversification for the long term.”

Source: Exam

Related post

Grupo On line casino broadcasts the sale of a part of its exercise in Brazil

Grupo On line casino broadcasts the sale of a…

The company hopes to raise around US$ 500 million with a stake in Assaí The French group Casino announced this Monday…
What does Byju’s, the edtech that sponsors the World Cup and has already invested greater than R$ 100 million in Brazil

What does Byju’s, the edtech that sponsors the World…

The education technology company arrived in Brazil in mid-2021 and has already invested more than R$ 100 million THE Qatar Cup…
From Brasilia, cybersecurity firm NTSEC buys Ziva and targets income of R$ 200 million

From Brasilia, cybersecurity firm NTSEC buys Ziva and targets…

With the first acquisition since its foundation in 2007, the NTSEC Group targets revenues of R$ 200 million in 2022 O…

Leave a Reply

Your email address will not be published. Required fields are marked *